Introduction

•Why are biofuels important for the rural poor?•Why is jatropha important for the rural poor

living in drylands?•What are the problems with jatropha?

Why are biofuels important for the rural poor?

• Almost 2.5 billion people in developing countries earn their livelihoods from agriculture

• Of these, 900 million live below the poverty line

• Agriculture directly employs 1.3 billion people or 40% of the global labour force

• Yet, agriculture contributes only around 4% of global GDP (some USD 1.6 trillion)

Why are biofuels important for the rural poor?

• Issue 1: If these people stay in agriculture, is this basket large enough to substantially improve their incomes and lift them out of poverty?

• Probably not, as commodity prices only increased after the agricultural basket expanded, with maize being used as a biofuel feedstock

Commodity prices

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Why are biofuels important for the rural poor?

• Issue 2: Can these people move out of agriculture?• Even if half the agricultural labour force (650 million)

moves out of agriculture in the next 20 years, can they be absorbed in other sectors in developing countries?

• It is difficult to foresee• The US economy of USD 14 trillion has a labour force of

153 million and an unemployment rate of 5% • The EU economy of USD 16 trillion has a labour force of

222 million and an unemployment rate of 9%

Why are biofuels important for the rural poor?

•It seems that the agricultural basket is small and unless it is expanded, prospects for reducing poverty through development of the agricultural sector only remain bleak

•However, prospects improve when the agricultural basket is expanded to include biofuels because the energy market is much larger, which underscores the importance of biofuels in alleviating poverty

•However, it widely recognised that this must be undertaken responsibly, addressing both food security and environmental concerns

Why is jatropha important for the rural poor living in drylands?

•Agricultural activities are limited by prevalent agro-ecological conditions- Intensive agriculture is difficult- Livestock: environmental degradation- Niche products: low demand

•Jatropha offers a potential alternative, provided certain conditions are met

What are the problems with jatropha?

• Long growing time • Suitable high oil content, high yielding varieties are not yet

identified• Agronomy is not well known• Better adapted varieties that can withstand water and high

temperature stress under drought conditions are required• Environmental impacts are not well understood • Need responsible public private partnerships to develop

product and address issues along the value chain• Biofuel development should not lead to alienation of land

of the poor

A few housekeeping issues

• The agenda is available in the folders• All moderators are requested to summarise the issues

raised in their respective sessions, which will be handed over to Judy Siegel as she facilitates the final group discussion on the 10th

• Since the profiles have already been made available, the moderators are requested to initiate discussions by just inviting the speakers when their turns come

• All speakers are requested to finish their presentations within their allotted times

• All people who wish to ask questions are requested to keep their queries to 1 minute as this will permit broader discussion